12:38 01.04.2014

Ukrainian winemakers in Crimea deprived of chance to continue production, says association

2 min read
Ukrainian winemakers in Crimea deprived of chance to continue production, says association

The annexation of Crimea and its consequences have caused the economic isolation of Ukrainian winemaking enterprises, the Association of Winegrowers and Winemakers of Ukraine has said.

"Winemaking companies located on the territory of the peninsula are today feeling what it means to be outside the economic system of Ukraine," reads an official address of the association sent to Acting Ukrainian President Oleksandr Turchynov.

According to the document, over 40 enterprises of the sector on the peninsula are not receiving excise labels, despite the fact that the companies have fulfilled all liabilities to pay the excise duty and ordered the labels on time.

The association said that tax agencies refuse to register invoices during the shipment of cargos to the continental part of Ukraine and the system of payments between producers and sellers is being destroyed.

In addition, supplies of spirit from Ukrspyrt have been suspended. Spirit is required for the production fortified and dessert wines.

The association also said that winemakers are anxiously waiting for the discussion of the draft law on the provision of rights and freedoms of citizens on the temporarily occupied territory of Ukraine. If the bill is passed, winemaking companies will have to shut down as Ukrainian enterprises, as they will receive a status of illegal economic entities.

"Dear Oleksandr Valentynovych [Turchynov], we stress that with such actions the country's government is forcing Ukrainian enterprises located on the territory of Crimea to find a way to be saved as a part of the Russian Federation," reads the address, citing association director Serhiy Mykhailechko.

Winemakers are ready to save their enterprises, and in particular, to partially transfer industrial facilities to the continental part of Ukraine, but the success of the campaigns depends on support of Ukrainian authorities, the association said.

"The issue of saving the sowing campaign and spring works at vineyards is urgent now. The stoppage of production after the isolation in Crimea is a guarantee that spring work will fail," reads the address.

The association asked Turchynov to create conditions for retaining the operation of winemaking enterprises located in Crimea.

"Today with your support, trade communications with the continental part of Ukraine should be unblocked and steps for the further settling of business doing by Crimean companies should be made. A transition period, which foresees the creation of special conditions for Crimean producers, should be introduced to stabilize the situation," winemakers said.

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